South Australian first home buyers: Are there any funding initiatives for you in the state?

By the resi financial blog team, 24 July 2014

South Australians interested in purchasing their first home in the near future should be aware of the various funds available to them that can help make their dreams of owning real estate come true sooner. Recent changes to the First Home Owner's Grant (FHOG) in the region could be beneficial for potential buyers looking into purchasing or building their own home in the coming months.

What is a FHOG?

Across Australia, each state has its own version of the FHOG. These change from state to state, but all have the shared purpose of helping first-time buyers get their foot in the door and successfully purchase their own slice of real estate.

The fund was created nationwide in 2000 and was comprised of $7,000 for buyers to utilise towards funding their property goals. However, since then a number of states have made the fund their own and revamped it for the state's own purposes. South Australia is no exception.

What are the recent changes to the FHOG?

As a first home buyer in South Australia, you're entitled to $15,000 towards the purchase or construction of a new home. However, since 1 July 2014, this fund no longer applies to established properties. The FHOG is available to all residential properties - including houses, flats, units, townhouses and apartments - as long as they conform to the state building planning laws.

What are the eligibility criteria?

Naturally, there are a number of restrictions and rules surrounding the fund. Firstly, at least one of the applicants (if you're applying as a couple) must be an Australian resident or have permanent residency in the country. Furthermore, neither party may have owned property in Australia prior and must be over the age of 18 years old at the time of application.

Furthermore, after the property has been purchased or constructed, it must be the principal place of residence for a continuous period of at least six months. This living period must commence within 12 months after completing the purchase transaction.

Finally, the FHOG will only be considered for properties that have a capped market value of $575,000 or less.

Moving into a new or substantially renovated home

The recent changes have completely eliminated any funding for established homes. However, they still apply to new residences. A new home is defined as one that has never been previously sold or occupied and extends to both properties on the market and any home you undertake the construction of yourself.

If you live in South Australia and are thinking about buying your first home, call one of our specialists at resi on 136 126 today to find out how we can help you with getting a mortgage.